Key Stats for Synopsys Stock
- Price Change for Synopsys stock: 5%
- $SNPS Share Price as of Dec. 1: $438
- 52-Week High: $651
- $SNPS Stock Price Target: $553
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Synopsys (SNPS) stock jumped nearly 5% on Monday after Nvidia announced a major strategic partnership and $2 billion equity investment in the electronic design automation company.
Nvidia purchased Synopsys shares at $414.79 each, representing a significant vote of confidence in the company’s future.
The multiyear partnership aims to revolutionize how engineering and design work gets done across nearly every industry.
Nvidia will help accelerate Synopsys’ portfolio of compute-intensive applications using GPU technology, advance AI-powered engineering workflows, and develop joint go-to-market initiatives to reach customers worldwide.
Nvidia CEO Jensen Huang called it “a huge deal” during an appearance on CNBC, explaining that the partnership targets one of the most compute-intensive industries in the world.
Synopsys CEO Sassine Ghazi highlighted that workloads that previously took weeks to complete will now finish in hours thanks to GPU acceleration.
The core of the partnership involves integrating Nvidia’s CUDA GPU acceleration technology and AI capabilities into Synopsys’ engineering software tools. These tools help companies design everything from semiconductor chips to entire systems, such as aircraft, cars, and industrial equipment.
By dramatically speeding up simulations and design verification, the partnership addresses major pain points around workflow complexity, rising development costs, and time-to-market pressure.
What makes this particularly significant for Synopsys stock is the expansion of addressable market opportunity.
Traditionally, Synopsys served the semiconductor industry’s design needs. With Nvidia’s accelerated computing platform, the company can now address engineering teams across aerospace, automotive, industrial, healthcare, and virtually every other sector that designs and manufactures physical products.
The partnership includes several key initiatives.
- First, Synopsys will broadly accelerate its applications using Nvidia’s CUDA-X libraries and AI-Physics technologies.
- Second, the companies will integrate agentic AI capabilities to enable autonomous design workflows.
- Third, they’ll collaborate on digital twin technology using Nvidia’s Omniverse platform.
- Finally, they’ll make these solutions accessible via cloud deployment.
Importantly, the partnership is not exclusive. Both companies can continue working with other players in the semiconductor and EDA ecosystems, thereby reducing potential antitrust concerns and maintaining healthy competition.
See analysts’ growth forecasts and price targets for Synopsys stock (It’s free!) >>>
What the Market Is Telling Us About SNPS Stock
The rally in Synopsys stock reflects investor excitement about the company’s positioning at the intersection of two major technology shifts: the move from CPU-based to GPU-accelerated computing, and the expansion of AI into physical engineering workflows.
Huang pointed out that in 2016, scientific computing workloads ran 90% on CPUs and just 10% on GPUs. Today, that ratio has completely flipped to 90% GPU-accelerated computing.
He expects the same transformation to happen in the engineering and design software industry over the next few years, creating massive growth opportunities for both companies.
The $2 billion equity investment from Nvidia serves multiple purposes. It demonstrates Nvidia’s commitment to the partnership and confidence in Synopsys’ growth trajectory. It also provides Synopsys with additional financial flexibility to accelerate product development, though CEO Ghazi clarified there’s no obligation to spend the investment proceeds on Nvidia GPUs specifically.
Engineering R&D accounts for a significant share of global GDP. By enabling companies to design and test products virtually using digital twins before building physical prototypes, Synopsys and Nvidia can tap into trillions of dollars in annual R&D spending across all industries.
Synopsys has been integrating GPU acceleration into its products for about 7 years, achieving 10x to 20x speedups on specific workloads.
But this partnership significantly accelerates that roadmap. The companies have committed engineering resources across multiple domains to bring 20-plus accelerated applications to market by 2026.
The acquisition of Ansys earlier this year also strengthened Synopsys’ position. Ansys brought simulation and analysis capabilities used by engineering teams across nearly every industry, dramatically expanding Synopsys’ customer base beyond traditional semiconductor design.
Investors should watch for adoption metrics as these accelerated tools roll out to customers. The value proposition is clear: what takes weeks can now happen in hours, enabling faster time-to-market and more design iterations.
Companies that design complex AI-powered products will likely adopt these tools rapidly, given the competitive advantages they provide.
Integrating GPU acceleration and AI workflows into complex engineering software requires significant technical work. However, with both companies committing substantial resources and having a 33-year partnership history, the execution risk appears manageable.
Estimate a company’s fair value instantly (Free with TIKR) >>>
How Much Upside Does Synopsys Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
